SECURITIES AVAILABLE FOR SALE

6 Months Ended

Jun. 30, 2023

Available-for-sale Securities

Schedule Of Available For Sale Securities [Line Items]

SECURITIES AVAILABLE FOR SALE AND SECURITIES HELD TO MATURITY

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, at June 30, 2023 and December 31, 2022:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2023
U.S. government and agency obligations
One through five years	$	6,000,000	$	—	$	(554,673	)		5,445,327
Corporate bonds due in:
Less than one year		1,004,611		—		(12,737	)		991,874
One through five years		11,214,745		—		(458,029	)		10,756,716
Five through ten years		1,000,000		—		(136,850	)		863,150
MBSs – residential		43,013,660		1,874		(5,932,239	)		37,083,295
MBSs – commercial		18,884,035		—		(2,809,794	)		16,074,241
Total	$	81,117,051	$	1,874	$	(9,904,322	)	$	71,214,603
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2022
U.S. treasury bills	$	4,971,310	$	—	$	(43,702	)	$	4,927,608
U.S. government and agency obligations
One through five years		6,000,000		—		(534,846	)		5,465,154
Corporate bonds due in:
Less than one year		3,022,044		—		(37,230	)		2,984,814
One through five years		12,182,364		554		(585,085	)		11,597,833
Five through ten years		1,000,000		—		(76,600	)		923,400
MBSs – residential		44,879,199		2,146		(5,232,300	)		39,649,045
MBSs – commercial		22,086,788		—		(2,534,064	)		19,552,724
Total	$	94,141,705	$	2,700	$	(9,043,827	)	$	85,100,578

All of the mortgaged-backed securities (“MBSs”) are issued by the following government sponsored agencies: Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association (“GNMA”).

NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)

There were no sales of securities during the six months ended June 30, 2023 or June 30, 2022.

The age of unrealized losses and the fair value of related securities as of June 30, 2023 and December 31, 2022 were as follows:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2023
U.S. government and agency obligations	$	—	$	—		$	5,445,327	$	(554,673	)	$	5,445,327	$	(554,673	)
Corporate bonds		—		—			12,611,740		(607,616	)		12,611,740		(607,616	)
MBSs – residential		2,028,180		(188,944	)		34,750,418		(5,743,295	)		36,778,598		(5,932,239	)
MBSs – commercial		-		-			16,074,241		(2,809,794	)		16,074,241		(2,809,794	)
Total	$	2,028,180	$	(188,944	)	$	68,881,726	$	(9,715,378	)	$	70,909,906	$	(9,904,322	)
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2022
U.S treasury bills	$	4,927,608	$	(43,702	)	$	—	$	—		$	4,927,608	$	(43,702	)
U.S. government and agency obligations		2,758,248		(241,752	)		2,706,906		(293,094	)		5,465,154		(534,846	)
Corporate bonds		11,859,089		(392,367	)		2,647,402		(306,548	)		14,506,491		(698,915	)
MBSs – residential		16,474,573		(1,557,718	)		22,801,879		(3,674,582	)		39,276,452		(5,232,300	)
MBSs – commercial		9,449,159		(857,122	)		10,103,565		(1,676,942	)		19,552,724		(2,534,064	)
Total	$	45,468,677	$	(3,092,661	)	$	38,259,752	$	(5,951,166	)	$	83,728,429	$	(9,043,827	)

Unrealized losses on corporate bonds available for sale are not considered to be credit losses because the issuer bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At June 30, 2023, 100% of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. Because the decline in fair value was attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these losses to be credit-related at June 30, 2023. As of June 30, 2023, no ACL was required on available-for-sale securities. At December 31, 2022 the Bank did not consider these securities to be other-than-temporary impaired. At June 30, 2023 and December 31, 2022, securities available for sale with a carrying value of $118,936 and $126,662 were pledged to secure public deposits. There were 49 securities in a loss position at June 30, 2023.